This invention relates generally to methods and systems for analysis of relationships between people and/or entities. In particular, the present invention relates to methods and systems of determining and illustrating links that can associate a person or entity with another person or entity.
The capital markets in a country such as the United States may be the most sophisticated and regulated in the world. Nonetheless, the current trading system has resulted in examples of abuse and financial scandal through such practices as insider trading and possible conflicts of interest among board members.
Weaknesses in the current system have resulted in significant fiduciary questions relating to relationships between corporate insiders and investors, as well as apparent quid pro quo relationships among members on various boards of directors. The implications of such questions have been played out in criminal prosecutions, class action litigations, the opinions of commentators and increased regulation. One result has been increased attention to regulatory requirements relating to the ability to show the independence of board members.
This present situation also has international implications. The current system can be viewed as an invitation to continued corruption. Over the last decade, U.S. exchanges, investment banks and the U.S. government have preached the benefits of the free market. The best hope for economies is to allow companies to act in an open and transparent market that sets prices on a competitive basis, free of corruption. The current system has proven to be an anathema to this philosophy.
What is needed is a way to mitigate risks associated with relationships to corporate insiders and investors as well as interrelated board memberships. Risk management tools should serve to restore investor confidence in investment banking, capital markets and wealth management relationships.